The company also offers regional service under the United Express brand and through contracts with various regional carriers.
United's primary competitors include Delta Air Lines Inc. Like the broader airline industry, United has experienced a drastic downturn in business as a result of the COVID pandemic over the past year. Revenue was down about two-thirds from pre-pandemic levels in Q1 FY Total revenue per available seat mile , a key metric of efficiency for the airline industry, also declined significantly year-over-year YOY.
According to its annual report, United has a single operating segment. This reflects the company's aircraft deployment system: United deploys aircraft throughout its global network through a single route scheduling system to maximize its value. In its annual report, United breaks out its revenue by geographic region: nearly two-thirds of revenue comes from the U.
In its Q1 FY report, United also provides revenue breakdowns for three key categories: passenger, cargo, and other. We look at these categories in detail below. The company did not break down these categories by profit.
United's passenger revenue includes revenue generated from ticket sales for passengers throughout its network. The company recognizes passenger revenue when transportation is provided. This category also includes ancillary fees such as ticket change fees, baggage fees, and inflight amenities fees. Passenger revenue represented In Q1 FY , passenger revenue comprised United's cargo revenue is generated from the company's freight and mail services business.
These services are provided to commercial businesses, freight forwarder firms, and the United States Postal Service. In , the company began launching cargo-only flights. Cargo revenue represented In Q1 FY , cargo revenue was 3. United classifies other revenue as revenue generated from third-party businesses including maintenance services, catering, frequent flyer award non-travel redemptions, and ground handling.
Other revenue represented In Q1 FY , other revenue was 8. Although customer travel plunged in , United anticipates the beginning of a gradual recovery in Here's how United performed in the second quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:.
Fuel costs have also climbed. Airlines have reported a surge in bookings since this spring as vaccines rolled out broadly, Covid cases fell and officials dropped pandemic-era restrictions.
While a small part of United's overall sales, air cargo demand has been a bright spot during the pandemic for the carrier and others. But United and other airlines have been upbeat about the demand recovery. United last month said it plans to buy Boeing and Airbus narrow-body jets, its largest aircraft order ever , to replace older planes and grow the carrier over the next several years.
Skip Navigation. United executives will discuss its results on an earnings call Wednesday at a. American, Southwest, Alaska and other airlines are scheduled to report results Thursday. Last week Delta Air Lines warned that rising fuel prices would hurt its bottom line in the fourth quarter.
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